Financial Wellness at Work: Incorporating Life Insurance into Employee Wellness Programs

Employee wellness programs are gaining a lot of popularity lately, and rightly so. These programs help promote the overall work culture and employee well-being in an organization. 

If you sift through the list of benefits employees get from their organization, one of the significant elements you’d find is Life Insurance. There are several reasons for that, like people tend to be reluctant when it comes to buying insurance, so getting it for free from employers is a bonus. 

In this article, we will explore the importance of life insurance in an employee wellness program and what happens to life insurance when you leave a job.

The Significance of Life Insurance

Life insurance is a vital financial instrument that offers individuals and their families a protective shield in the unfortunate event of an untimely demise. It offers a lump sum payment, known as a death benefit, to the beneficiary named in the policy. This financial assistance can effectively address various financial obligations, such as unpaid debt or funeral costs, and ensure a continuous source of income for dependents.

Incorporating Life Insurance into Employee Wellness Programs

Education and Awareness

One of the first steps you can take is to provide education and raise awareness about its importance. Employers can organize seminars, workshops, or webinars to educate employees about the different types of life insurance, how it works, and the benefits it provides. By gaining a better understanding of life insurance, employees can make informed decisions that align with their financial goals and family needs.

Group Life Insurance Policies

When comparing group life insurance premiums to individual life insurance policies, it becomes evident that the former is notably more affordable. That’s primarily due to the decreased risk associated with group life insurance from the perspective of insurance companies. The determination of group life premiums is based on the collective risk of the entire company or group, which tends to be relatively low for most organizations. 

Additionally, since group life insurance often comes with health insurance, the costs related to sales and administration are kept to a minimum.

What Happens to Life Insurance When an Employee Leaves a Job?

The answer depends on the type of policy they have. If the employee has a group life insurance policy provided by their employer, they may have several options:

  • Conversion Option

Some group life insurance policies offer a conversion option, allowing employees to convert their group coverage to an individual policy without having to go through medical underwriting. This option ensures that individuals can maintain life insurance coverage even after leaving the job. However, it’s important to note that the premiums for individual policies are typically higher than for group policies.

  • Portability

In some cases, group life insurance policies offer a portability feature. It means employees can continue their coverage by paying the premiums directly to the insurance provider after leaving their job. Portability allows individuals to maintain their life insurance coverage seamlessly, without any interruption or the need for new underwriting.

  • Coverage Termination

If the group life insurance policy doesn’t have the conversion or portability option, the coverage would be terminated when the employee leaves the job. 


Financial wellness is a crucial aspect of overall employee well-being, and life insurance plays a vital role in safeguarding one’s financial future. Incorporating life insurance into employee wellness programs promotes financial security and enhances the overall well-being of employees.

Employers can empower their workforce by offering essential resources and support, enabling employees to make prudent financial choices and safeguard their loved ones during times of adversity.

Sandra Johnson

Sandra Johnson

Sandra Johnson was a few years out of school and took a job as a life insurance agent in California, selling coverage door-to-door for Prudential. The experience taught her about the technical components of insurance and its benefits for individuals and society, as well as the misunderstandings people often have about insurance. She has over ten years’ experience in the insurance industry, having worked as both a Broker and Underwriter, assisting clients across a broad range of industries. At Insurance Noon, Sarah diligently gathers all the required information and curates up pieces to provide meaningful insurance solutions. Her personal value proposition is to demonstrate a genuine interest in always adding value for clients.Her determined approach to guiding clients has turned her into a platinum adviser to multiple insurers.

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